Chapter 15 Financing II: Primary ans Secondary Markets

Question 1

Agent who brings together lender and borrower for a fee

Answer 1

Mortgage Broker

Question 2

bridge or swing loan for shot term financing before a sale (seller may find it necessary to borrow money to purchase new home while selling current home)

Answer 2

Interim financing

Question 3

cooperative organization for members who save and borrow

Answer 3

Credit Union

Question 4

Federal Home Loan Mortgage Corporation; warehouses packages of mortgage

Answer 4

Freddy Mac (government)

Question 5

A privately owned corporation that sets standards and buys mortgages

Answer 5

Fannie Mae

Question 6

Government national mortgage association; pools mortgages for Investors

Answer 6

Ginnie Mae

Question 7

Mortgage that provides possibility for further borrowing. Is used for additional funds to improve the property

Answer 7

Open end Mortgage

Question 8

mortgage covering both real and personal property

Answer 8

Package Mortgage

Question 9

agent who makes real estate loans

Answer 9

Mortgage Banker

Question 10

Loans higher than those usually bought by the secondary market

Answer 10

Jumbo loans

Question 11

mortgage covering more than one parcel of real estate Is used to finance Subdivisions developments with a partial release clause

Answer 11

Blanket mortgage

Question 12

additional financing for home owners; usually a type of second mortgage

Answer 12

Home Equity Loans

Question 13

Straight loan for short building period

Answer 13

Construction loan

Question 14

percentage of income borrower may spend on housing expense

Answer 14

Qualifying Ratio

Question 15

arrangement by which seller becomes tenant

Answer 15

Sale-leaseback

Question 16

allows the seller to collect a mortgage from the buyer while continuing to make payments on the old loan

Answer 16

wraparound Mortgage

Question 17

lending institutions that make mortgage loans the public

Answer 17

Primary Mortgage Market

Question 18

regulates Consumer Loans

Answer 18

Truth in Lending Act

Question 19

loan in which investors shares payments and profits

Answer 19

Shared equity mortgage

Question 20

Loan not intended for resale on the secondary market (jumbo)

Answer 20

Portfolio Loan

Question 21

words in an ad that require full disclosure of Financing conditions

Answer 21

Triggering term

Question 22

mortgage in which lender sends regular checks building up debt

Answer 22

Reverse Mortgage

Question 23

process on deciding whether to make (Approved) specific loans

Answer 23

Underwriting

Question 24

Implements the Truth in Lending Act

Answer 24

Regulation Z

Question 25

Seller Financing

Answer 25

Purchase money Mortgage

Question 26

detailed loan cost

Answer 26

Loan Estimate ( LE )

Question 27

required items before lender can proceed

Answer 27

ALIENS ( Address, Loan amount, Income, Estimated property Value, Name, Social Security)

Question 28

Merges TILA and RESPA disclosures

Answer 28

TRID

Question 29

was created to ensure that buyers and sellers in residential real estate transaction involving new mortgage have knowledge of all settlement cost

Answer 29

( RESPA ) Real Estate Settlement Procedure Act